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Apple Unveils New Gadgets: ETFs in Focus

Sweta Killa

At its September hardware event, Apple Inc. AAPL has launched a set of new iPhones — iPhone 11, the iPhone 11 Pro, and the iPhone 11 Pro Max —  that comes at lower prices. The iPhone 11 starts at $699, while the 11 Pro and 11 Pro Max start at $999 and $1,099, respectively, and will be available from Sep 20.

The two high-end smartphones, iPhone 11 Pro and iPhone 11 Pro Max feature OLED displays and triple-camera arrays while the base model iPhone 11 handset has an LCD screen and dual-camera array.

Also, Apple debuted its fifth-generation Apple Watch smartwatch, which will be available starting Sep 20. Apple Watch Series 5 features an always-on display and has a new emergency services features, such as international emergency calling. The new watches will come with aluminum, ceramic and new titanium cases. The latest Apple Watch starts at $399 for GPS models and $499 for cellular models (read: Top Ranked Tech ETFs in Focus).

The iPhone maker also announced the pricing for its new Apple TV+, which will be available from Nov 1, 2019. The TV streaming service will cost just $4.99 per month, much lower than the $9.99 monthly fee that some analysts had expected, and also cheaper than streaming services from Netflix Inc. (NFLX) and Walt Disney Co. (DIS). Netflix’s entry-level streaming costs $8.99 per month while Disney plans to charge $6.99 a month for its Disney+ streaming service, which is slated to be launched later this year.

Apple also unveiled a new show that would feature Jason Momoa, the star of Aquaman and Game of Thrones. Those who buy a new iPhone, iPad, Mac, Apple TV, or iPod Touch will get a year of the TV+ service for free.

Moreover, the company offered details on its gaming subscription program, Apple Arcade, which will be available from Sep 19 for $4.99 per month with a one-month free trial. It will offer more than 100 exclusive video games for a monthly subscription fee. Also, Apple rolled out a new version of its most-popular iPad tablet, starting at $329 (read: Beaten-Down, Top-Ranked Tech ETFs to Buy Now).

After years of high pricing, the gadget maker is now focusing on lower pricing strategy in order to lure customers as it is struggling with declining iPhone sales. Additionally, it is focusing on streaming services, software and original content to expand its business beyond iPhones.

ETFs in Focus

The slew of new gadgets and cheap pricing are expected to boost Apple’s revenues, compelling investors to look at ETFs that are dominated by this tech titan. Below we have highlighted five funds having Apple as the top or second firm with a double-digit allocation and sport a Zacks Rank #1 (Strong Buy) with a Medium risk outlook:

Select Sector SPDR Technology ETF XLK

This most-popular technology ETF has $22.6 billion in AUM and charges 13 basis points (bps) in fees per year from investors. AAPL occupies the second position and makes up for roughly 17.1% of assets (read: 5 Top Tech Stocks Under $20 That Promise More Gains).

Vanguard Information Technology ETF VGT

This fund also targets the broad tech sector with Apple as the top firm with 15.6% allocation. It has amassed $21 billion in its asset base while charges 10 bps in annual fees.

MSCI Information Technology Index ETF FTEC

With AUM of $2.6 billion, the product allocates 15.5% in the second holding - Apple. The ETF has 0.08% in expense ratio.

iShares Dow Jones US Technology ETF IYW

This ETF provides investors exposure to the broad technology stocks, charging investors 42 bps in annual fees. Here, Apple is the second firm and accounts for 15.4% allocation. The fund has AUM of $4.2 billion.

Invesco QQQ (QQQ)

This ETF provides exposure to the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization, with Apple as the second firm, which accounts for 10.5% share in the basket. It has $75.2 billion in AUM and charges 20 bps in fees per year (read: 5 Ultra-Cheap Growth ETFs to Tap on Global Stimulus Hopes).

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Apple Inc. (AAPL) : Free Stock Analysis Report
 
Vanguard Information Technology ETF (VGT): ETF Research Reports
 
Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports
 
iShares U.S. Technology ETF (IYW): ETF Research Reports
 
Technology Select Sector SPDR Fund (XLK): ETF Research Reports
 
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